10.17.24
Henkel is #5 on our Top Global Beauty Companies 2024 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#5 Henkel
Düsseldorf, Germany
www.henkel.com
$11.5 Billion
Sales in the Consumer Brands business unit reached $11.5 Billion in fiscal 2023 and was 3.3% below the prior year. This was affected by foreign exchange effects reducing sales by 4.4%. The sale of business activities in Russia had a large impact on sales, resulting in a 5.1% decrease.
Henkel decided to exit its activities in Russia in April 2022, a few weeks after Russia attacked Ukraine. This was followed by a highly complex divestment process and in April of 2023, Henkel was able to sell its business in Russia to a consortium of local financial investors. The agreed purchase price amounted to around 600 million euros.
In 2022, Henkel merged its Laundry & Home Care unit with its Beauty Care unit to create the Consumer Brands business unit. This new unit went ‘live’ in January of 2023. This multi-category platform has since enabled large dynamic growth. The Consumer Brands business has achieved very strong organic growth and returned to a double-digit adjusted EBIT margin.
The integration process progressed much faster than originally planned. More than 200 million euros of the targeted savings of around 250 million euros by the end of 2024 had already been achieved by the end of 2023. The targeted total savings from phase 1 were increased to 275 million euros.
In its Consumer Brands business, Henkel divested or discontinued brands and activities representing total sales of around 650 million euros. This followed the announcement to merge the two consumer businesses in early 2022.
The second integration phase, which focuses on optimizing the supply chain network in the Consumer Brands business has also started. In addition, the “1-1-1 principle,” meaning one order, one delivery, and one invoice, has already been introduced in the first countries.
In 2023, Henkel achieved savings of about 80 million euros from phase 2 of the integration. The expected total savings from phase 2 increased from at least 150 million euros to around 250 million euros. The expected total savings from both phases of the integration, which are to be realized in full swing by the end of 2026, have increased from 400 million euros to 525 million euros.
In August of 2023, Henkel appointed Pernille Lind Olson as President of the North American region. Lind Olsen also serves as Corporate Senior Vice President of Adhesive Technologies Packaging & Consumer Goods; and Regional Head of Adhesive Technologies, North America. As president of the North American region, she succeeds Steven Essick, who has retired after 27 years with the company.
In company achievements, Forbes listed Henkel as one of the World’s Best Employers. The company was also ranked in the top five for the Packaged Goods industry. Olson stated that the company has an ongoing mission for collaboration and strives to create a dynamic workplace for its 8,000 North American employees and over 170,000 employees in over 50 countries.
In Beauty news, Henkel signed an agreement in February 2024, to acquire Vidal Sassoon in Greater China from Procter & Gamble. In the 2022/2023 fiscal year, Vidal Sassoon achieved over $2 million in sales in the Chinese market. With this acquisition, Henkel strengthens its presence in the Chinese haircare market.
Henkel has invested in its businesses to further strengthen its brands and innovation. For example, the company plans to significantly increase marketing and sales investments to fuel future growth and further improve the profitability of the business.
The company expects to generate overall organic sales growth of between 2.0% and 4.0% in fiscal 2024. Adjusted return on sales is expected to be between 12.0 - 13.5%. Adjusted return on sales is expected to be between 11.0 and 12.5% for Henkel’s Consumer Brands.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#5 Henkel
Düsseldorf, Germany
www.henkel.com
Corporate Sales:
$23 BillionBeauty Sales:
(Consumer Brands-Laundry and Home Care and Beauty Care):$11.5 Billion
Key Personnel:
- Carsten Knobel, chief executive officer
- Marco Swoboda, executive vice president of finance, purchasing and global business solutions
- Sylvie Nicol, executive vice president, human resources, infrastructure, and sustainability
- Wolfgang König, executive vice president, Henkel Consumer Brands
Major Products:
- Schwarzkopf
- Dial
- got2b
- Blonde
- Alterna
- Bonacure
- Essensity
- Pravana
- Joico
- Kenra
- Naturelle
- Sparks
- SexyHair
- Wellphoria
- Zotos
New Products:
- Vidal Sassoon (in Greater China)
- Got2b relaunch of the entire styling portfolio
- Schwarzkopf Professional Blondme Barbie Collection
- Pravana HydraGloss
- Kenra Simply Add Water Shampoo and Conditioner
Comments:
The Consumer Brands business unit saw strong organic sales growth of 6.1%, driven particularly by the Laundry & Home Care and Hair business areas.Sales in the Consumer Brands business unit reached $11.5 Billion in fiscal 2023 and was 3.3% below the prior year. This was affected by foreign exchange effects reducing sales by 4.4%. The sale of business activities in Russia had a large impact on sales, resulting in a 5.1% decrease.
Henkel decided to exit its activities in Russia in April 2022, a few weeks after Russia attacked Ukraine. This was followed by a highly complex divestment process and in April of 2023, Henkel was able to sell its business in Russia to a consortium of local financial investors. The agreed purchase price amounted to around 600 million euros.
In 2022, Henkel merged its Laundry & Home Care unit with its Beauty Care unit to create the Consumer Brands business unit. This new unit went ‘live’ in January of 2023. This multi-category platform has since enabled large dynamic growth. The Consumer Brands business has achieved very strong organic growth and returned to a double-digit adjusted EBIT margin.
The integration process progressed much faster than originally planned. More than 200 million euros of the targeted savings of around 250 million euros by the end of 2024 had already been achieved by the end of 2023. The targeted total savings from phase 1 were increased to 275 million euros.
Henkel-owned Dial Hand Soap and Exfoliate & Restore Cocoa Butter & Orange Extract Body Wash are bottled in ‘new 100% PCR Plastic (excluding cap and pump)
ergonomically improved bottles.
ergonomically improved bottles.
In its Consumer Brands business, Henkel divested or discontinued brands and activities representing total sales of around 650 million euros. This followed the announcement to merge the two consumer businesses in early 2022.
The second integration phase, which focuses on optimizing the supply chain network in the Consumer Brands business has also started. In addition, the “1-1-1 principle,” meaning one order, one delivery, and one invoice, has already been introduced in the first countries.
In 2023, Henkel achieved savings of about 80 million euros from phase 2 of the integration. The expected total savings from phase 2 increased from at least 150 million euros to around 250 million euros. The expected total savings from both phases of the integration, which are to be realized in full swing by the end of 2026, have increased from 400 million euros to 525 million euros.
In August of 2023, Henkel appointed Pernille Lind Olson as President of the North American region. Lind Olsen also serves as Corporate Senior Vice President of Adhesive Technologies Packaging & Consumer Goods; and Regional Head of Adhesive Technologies, North America. As president of the North American region, she succeeds Steven Essick, who has retired after 27 years with the company.
In company achievements, Forbes listed Henkel as one of the World’s Best Employers. The company was also ranked in the top five for the Packaged Goods industry. Olson stated that the company has an ongoing mission for collaboration and strives to create a dynamic workplace for its 8,000 North American employees and over 170,000 employees in over 50 countries.
In Beauty news, Henkel signed an agreement in February 2024, to acquire Vidal Sassoon in Greater China from Procter & Gamble. In the 2022/2023 fiscal year, Vidal Sassoon achieved over $2 million in sales in the Chinese market. With this acquisition, Henkel strengthens its presence in the Chinese haircare market.
Looking Ahead:
Henkel is expecting moderate growth in global economic output moving forward. This assumes a moderate increase in both industrial demand and consumer demand in key areas of the consumer goods business.Henkel has invested in its businesses to further strengthen its brands and innovation. For example, the company plans to significantly increase marketing and sales investments to fuel future growth and further improve the profitability of the business.
The company expects to generate overall organic sales growth of between 2.0% and 4.0% in fiscal 2024. Adjusted return on sales is expected to be between 12.0 - 13.5%. Adjusted return on sales is expected to be between 11.0 and 12.5% for Henkel’s Consumer Brands.
